Mandatory assortment for the sales force

How is a mandatory assortment for distribution by the sales force determined?

We all have limitations - in terms of space, resources or time. When the company we work for has created 100 products (SKU - stock keeping unit or in other words a product with a unique barcode), how do we fit the 100 products into 1 retail outlet? This is impossible. However, how many products are mandatory and possible?

Every sales department needs support from the office. Salespeople are executors and a huge force when efforts are properly directed in one direction. That is why it is good to analyze which SKUs are suitable for which channels/objects.

Step 1: Extract the turnover in leva by SKU by quarter for the last year and compare it with the previous year.

Step 2: Filter and see which SKUs make 80% of the turnover for the year. Very often no more than 20% of the SKUs make. Yes, the 80/20 rule applies in this situation too.

Step 3: Extract the profit in BGN and % by SKU by quarter for the last year

Step 4: Filter and see which SKUs make 80% of the profit for the year. Very often, no more than 20% of the SKUs make. Yes, the 80/20 rule applies again.

Step 5: Review whether the highest-selling and highest-profitable products have overlap.

In case they overlap - you have the result which are the absolutely mandatory SKUs that you want to distribute from your merchants in each store regardless of the size of the store. The minimum assortment is valid for the smallest stores. Often with the size of the store, the shelf grows and from there the number of SKUs in it.

In case you don't have an overlap - look at the trends. Which products have grown compared to last year and by indicators. Choose the products that help you achieve your goals.

What happens to the remaining 80% of SKUs? Look at the shelves of products in stores. Assess how large the categories themselves are and what market share you would like to achieve. What is your current market share in the store and how many products make it? Set a goal - for example, 25% shelf share in soft drinks. You currently have 5 SKUs in the category that make up 15% shelf share. Review how many of these 5 are on the list of mandatory and add those that bring both turnover and profit and, if placed even with 1 person, will bring 25% market share. Warning - you do not have the right to oblige a customer to allocate shelf space for products, as this is against the law. But every store, when you offer them products that are turnover and from which they make a profit, will be willing to give your assortment a chance in their store.

How to assess which products with how many faces to be - expect it soon.